24th Feb 2022 12:35
(Alliance News) - Rathbones Group PLC on Thursday reported strong progress in 2021, as it delivered against its strategic ambitions.
The London-based investment manager said profit before tax in 2021 was GBP95.0 million, more than double GBP43.8 million in 2020. Underlying profit before tax was up 31% to GBP120.7 million from GBP92.5 million.
Earnings per share were nearly tripled year-on-year, growing to 133.5 pence from 49.6p.
Operating income increased 19% during the year to GBP435.9 million, from GBP366.1 million in 2020, reflecting growth in all areas, the company said.
Total funds under management and administration closed the year at GBP68.2 billion, up 25% year-on-year from GBP54.7 billion. GBP4.9 billion was added to FUMA by its acquisition of focused financial planning business Saunderson House.
Rathbones proposed a final dividend of 54p, up 15% from 47p in 2020, bringing the total dividend to 81p for the year, up 13% on 2020's total of 72p.
Shares in Rathbones were trading down 3.7% to 1,691.36 pence each in London at midday on Thursday.
In 2022 and 2023, Rathbones plans to invest an additional GBP40 million into its digital strategy. It expects underlying operating margins in the mid-twenties for the next two years, and to return to a range of 27% to 30% from 2024 onwards. The underlying operating margin was 28% in 2021.
"We set out our focused strategy over two years ago and it has driven some considerable and positive changes within the business over that period. It is clear from the results we are publishing today that Rathbones is building strong organic growth momentum, complemented by value-added acquisitions," said Chief Executive Paul Stockton.
By Elizabeth Winter; [email protected]
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